Analyzing Blizzard Entertainment Inc.’s performance is a bit trickier these days after the Irvine-based video game publisher stopped disclosing subscription figures for its World of Warcraft franchise, but other metrics point to a strong close to 2015 and positive indicators for the new year.
Orange County’s largest software maker announced that its free-to-play collectible card game, “Hearthstone: Heroes of Warcraft,” amassed more than 40 million registered players through December. That’s about 10 million more players than the previous quarter, when the game was estimated to generate about $40 million per quarter through purchases of special card sets and accessories that boost performance.
The company’s first-person shooter, “Overwatch,” which will be distributed on PCs, PlayStation 4 and Xbox One in the spring, has more than 8 million players in beta and strong viewership on twitch.tv, Chief Executive Michael Morhaime said in a recent conference call.
Blizzard’s first new title in 17 years will cost between $40 and $130, depending on the version and add-ons.
“Legacy of the Void,” the third chapter in the “StarCraft II” franchise, racked up more than 1 million unit sales within 24 hours of its Nov. 10 release.
Blizzcon, the company’s annual fanfest at the Anaheim Convention Center, drew more than 10 million live-stream viewers and a record audience on pay-per-view.
Subscriptions, about $15 per month, and typically Blizzard’s largest source of revenue, could get a bump after it releases its sixth expansion set, “World of Warcraft: Legion,” this summer.
The company has lost more than 4.5 million subscribers since the end of 2014. The last reported subscription figure released through September was 5.5 million.
It ended 2015 with revenue of $1.56 billion, down 9% from 2014. Operating income fell 26% to $561 million.
Morhaime said currency fluctuations led to the decreases and that under stable currency rates, 2015 sales would have eclipsed 2014’s record of $1.72 billion.
Incognito Mobility
Irvine startup USMobile, which collaborated with the National Security Agency for years to develop a private mobile network, has launched an iPhone and iPad app for the service.
The Scramble3 app features free calling and messaging to other Scramble3 users, who must be added to a user’s black book to contact, plus a dedicated “dark tunnel” network that’s not connected to public telephone networks, according to USMobile. Calls and messages aren’t stored on servers, and users are anonymous to the company.
USMobile partnered with IBM to offer the service to corporations through private and cloud-hosted IBM Linux on Power Systems and LinuxONE Systems servers. The company plans to launch what it calls the world’s most secure conferencing system for businesses in the coming months.
“The value proposition that Scrambl3 presents to competitive, high-stakes enterprises is enormous,” said founder Jon Hanour.
The no-loop “Fishbowl” technology, which has been employed by the Department of Defense for top-secret classified mobile communication, has been validated by independent security experts.
Users can download the app for a free 30-day trial and will pay $10 per month after that.
Communication privacy has gained more prominence recently as the Justice Department amps up pressure on Apple to unlock an iPhone used by San Bernardino terrorist Syed Farook. Apple had denied the request as of press time.
IoT Grows
The growth of the Internet of Things segment will fuel consumer electronics sales to a record $287 billion this year, according to the Consumer Technology Association.
Smartphones, TVs and laptops will account for about half of sales, which are projected to grow 1% this year, but the bigger catalysts are wearables, virtual reality and drones, the Arlington, Va.-based trade group said.
